Minnesota proposes comprehensive ban on cryptocurrency ATM machines

Odaily Planet Daily reports that Minnesota State Representative Erin Koegel introduced Bill HF 3642 on February 23, proposing to ban the placement or operation of cryptocurrency self-service kiosks anywhere in the state. The Minnesota Department of Commerce expressed strong support for the bill. The bill would repeal the regulatory framework established in 2024 and replace it with a complete ban.

According to data from the Minnesota Department of Commerce, the state received 70 complaints related to cryptocurrency terminals last year, reporting total losses of approximately $540,000. Currently, there are about 350 licensed terminals in the state, operated by 8 to 10 companies. Previous protective measures implemented in 2024 included a daily transaction limit of $2,000 for new customers, mandatory fraud warnings, and a 14-day refund window. However, regulators believe these measures have proven insufficient.

The FBI Internet Crime Complaint Center reported on January 3 that from January to November 2025, over 12,000 complaints involving Bitcoin ATMs were received, with total losses exceeding $335.5 million. The majority of reported losses involved seniors over 60. On February 3, Massachusetts Attorney General Andrea Joy Campbell accused Bitcoin Depot, a cryptocurrency ATM operator, of “deliberately assisting crypto scams,” stating that between August 2023 and January 2025, more than half of the funds at the company’s terminals in Massachusetts were linked to scams.

Currently, the global cryptocurrency ATM market is valued at $356.7 million in 2025, with the United States owning over 30,000 machines, accounting for approximately 88% of the global total. If Bill HF 3642 passes, Minnesota will become one of the first states in the U.S. to fully eliminate physical cryptocurrency terminals.